S&P Capital IQ forecasts gains for health insurance providers

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health insurance gains for 2013S&P Capital IQ expects health insurance providers to see gains in 2013

S&P Capital IQ, a leading provider of real time research and analytic data, expects to see to see health insurance providers see better earnings and higher share prices in 2013. Over the past year, health insurance companies have been working to overcome several challenges that have threatened to destabilize the industry and its various markets. Many of these challenges come from changing regulations, while others have come from emerging risks  in prominent markets.

Medical care organizations seeing higher enrollment

S&P Capital IQ notes that medical care organizations have been seeing higher individual membership enrollments recently despite a volatile economic climate. The firm notes that several of these organizations have also been reporting higher enrollment in Medicare Advantage programs and Medicaid programs. One of the factors contributing to these higher enrollment is due to states expanding their Medicaid programs in order to comply with federal regulations introduced by the Affordable Care Act.

Insurers work to comply with federal regulations

The health care reform law has introduced several changes to the U.S. health insurance industry. Many of these changes have proven difficult for health insurance companies to adapt to. S&P Capital IQ notes that, despite these changes, health insurance providers have managed to find ways to excel and find ways to make gains as they adjust to these regulations. One of the provisions of the Affordable Care Act that may prove beneficial for insurers is the individual insurance mandate, which requires all U.S. citizens to purchase and maintain some level of health insurance coverage.

Health insurance industry may fare well in wake of health care reform

S&P Capital IQ expects that health insurance providers will be able to adapt well to the changes introduced in the Affordable Care Act as they become more comfortable with these regulations. States may struggle to comply with these regulations, which may have some impact on smaller insurance companies. Nonetheless, many sectors of the health insurance industry have been seeing promising growth that could provide them with the momentum they need to come out on the other side of the Affordable Care Act much stronger.

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